Cargill has revealed findings from its first in-depth, category-focused Cargill Indulgence Study for the Southeast Asia (SEA) market. The study was based on a quantitative research covering 5 key markets namely Indonesia, Malaysia, Philippines, Thailand and Vietnam with 4,250 respondents aged from 18-45 years old.
The study uncovers snacking attitudes and the consumption and purchase drivers of SEA consumers towards 5 categories of indulgent foods – sweet biscuits and cookies, sweet baked goods such as pastries and cakes, chocolate confectionery, ice-cream and cafe-style beverages.
Kashan Rashid, Cargill’s Vice President and Managing Director, Food Southeast Asia, Australia & New Zealand mentioned that rising disposable incomes in a rapidly growing middle-class population in SEA led to consumers seeking greater wellness, comfort, enjoyment and indulgence from food.
Rise of the ‘Treat Yourself’ customer
Cargill’s study has shown there is a concerted consumer shift towards indulgent food experiences, even as the region shows a strong trend towards health and sustainability with respect to food. With taste and satisfying cravings being the key drivers of indulgence foods consumption, SEA consumers are turning to food for their everyday “Treat Yourself” moment. For example, amongst those surveyed, nearly 40% of SEA consumers reported drinking indulgent café beverages at least once a day, 45% of SEA consumers reported eating cookies once a day and half of SEA consumers bought more ice cream in 2024 than 2023. Food manufacturers will have to find new formulations that meet this growing need for ‘indulgence’ while ensuring health benefits remain a key consideration.
Indulgence Trends in SEA
Cargill’s study uncovered 5 key consumption and purchase drivers in Southeast Asia:
- Taste is the top purchase driver – 70% of consumers are willing to pay more for unique tastes, with innovative flavors driving increasing purchases.
- Elevated sensory experiences – 82% of consumers value a ‘super-sensorial’ experience, and 79% are likely to pay a premium for distinctive textural experiences.
- Willingness to pay for quality and sustainability – Dark chocolate is highly preferred, with 77% willing to pay more for gourmet ingredients. Additionally, 72% are willing to pay a premium for sustainably-produced indulgent foods.
- Desire to eat healthy even while indulging – 69% of consumers prioritize health attributes, with low sugar being the most influential factor.
- Preference for Local – 67% consider the country of origin important, with 65% willing to pay a premium for local Asian ingredients.
Key Insights
The study identified key insights across various categories.
- Taste is paramount to Southeast Asian sweet biscuits and cookies consumers, but quality ingredients and an enhanced, multi-sensory consumption experience are also crucial. For example, in Indonesia, 2 in 5 consumers desire indulgent mix-ins and textures like fluid center fillings and chocolate coatings in their biscuits and cookies.
- 1 in 3 sweet baked goods, pastries, and cakes consumers seek health benefits, focusing on less sugar, fat, and clean labels.
- 7 in 10 chocolate confectionery consumers value country of origin claims, with a strong preference for ingredients from Asia.
- Ice cream is mostly enjoyed during lunch and afternoon, with consumers favoring nuts and white chocolate chip inclusions.
- Lastly, half of SEA consumers increased their purchase of indulgent cafe-style beverages in 2024 compared to 2023, driven by new flavors and products.
Beh Kok Wei, Cargill’s Senior R&D Director, Food Southeast Asia, Australia & New Zealand said, “The Cargill Indulgence Study SEA provides valuable insights that will drive our product innovation and co-creation efforts with customers – from food manufacturing and foodservice to retail.”
Cargill’s goal to help create flavorful, quality, healthier and exciting food and beverages for its customers is facilitated by its extensive food manufacturing footprint in Asia with 20 state-of-the-art facilities, including a cocoa processing site, as well as 2 starches, sweeteners & texturizers plants in Indonesia, 2 edible oil plants in Malaysia and the Aalst Chocolate factory in Singapore. This allows Cargill to supply customers with high-quality solutions produced in Asia for Asian consumers.
With cocoa and chocolate being popular ingredients and flavors in bakery, confectionery and ice-cream products, Cargill launched a new production line at its cocoa plant in Indonesia in October 2024 to produce specialty cocoa powders and liquors that can be customized for desired flavors and sensory profiles. The company is currently expanding its edible oil plant in Port Klang, Malaysia, to produce specialty fats which are widely used across the various indulgence product categories.
Cargill also has 4 food innovation centers across Singapore, Beijing, Shanghai and Gurgaon, besides a Lipid R&D Centre in Malaysia, and a Cocoa Development Centre in Indonesia that cater to Asia’s demand for innovative and indulgent food and beverages.
